The XRP reserve of Coinbase, a leading US cryptocurrency exchange, has seen a significant decline, triggering widespread controversy among cryptocurrency enthusiasts. The account “XRP Liquidity” highlighted the recent drop in reserves, which has raised eyebrows due to Coinbase’s established reputation within the industry.
In just a matter of weeks, Coinbase has fallen out of the top ten exchanges regarding XRP holdings. Previously, the exchange ranked fifth with an impressive 884.3 million XRP in its reserve as of June 20. This steep decline now sees Coinbase holding merely 132.4 million XRP, reflecting an astonishing 85% reduction in a remarkably short time frame.
The current leaders in XRP reserves include Upbit with 5.871 billion XRP, Binance at 2.822 billion, and Uphold with 1.739 billion XRP, among others. The ongoing decline in Coinbase’s holdings is particularly notable as it transitions from a leading position among exchanges to a relative outsider.
Recent reports indicate that Coinbase held 199 million XRP as recently as September 1, but that figure has plummeted to 132.4 million. This represents a loss of approximately 67.07 million XRP, equivalent to about $200 million at current market prices, in the span of just one week. On the same day, an XRP transfer of $52.68 million was reported, although on-chain analysis classified it as an internal transfer rather than an external sale.
Speculation has intensified regarding the reasons behind Coinbase’s drastic reduction of XRP reserves. The lack of an official explanation from the company has led to allegations that the moves may have been intentional, aimed at curbing XRP’s bullish momentum. Some observers, including a commenter named Stern Drew, labeled the reserve drop as a form of price manipulation, particularly given that it coincided with a period when XRP’s price was teetering.
XRP has experienced a notable descent, with its price dropping from a peak of $3.66 in July to around $2.7 last week, though there has been a recent uptick. Drew further alleged that Coinbase’s connections to the Ethereum Foundation could be a factor in this perceived manipulation, suggesting a larger conspiracy involving institutions aiming to keep XRP prices suppressed for advantageous buying opportunities.
Despite these claims swirling in the community, it’s important to note that no verified evidence has substantiated these allegations, and they remain speculative in nature. Nonetheless, the discourse surrounding Coinbase’s XRP sales continues to evoke a mix of reactions among traders and investors, highlighting the ongoing sensitivity and volatility that characterizes the cryptocurrency market.
As this situation unfolds, observers are left questioning the integrity of Coinbase’s operations and the implications for XRP’s future in the competitive landscape of digital currencies.
